Monday, March 23, 2009

Member Pricing & Member Price Roll-Backs

At the first of this year we implemented our "LAGH Membership" program with special "members only pricing". This program was implemented to allow us to give you the rock bottom low prices we felt you deserved. As American business people we were taught at an early age to take a modest profit, and give the customer your very best. Even so, we were being told by certain groups and individuals that we had to move our prices up. Isn't it great when people tell you how to run your business. In this time of corporate greed and price fixing, we felt we had to find a way to give you the best prices we could afford to give you, regardless of the pressure that was being brought to bear on us. We're not prepared to tell you where this pressure was coming from, at this time. Frankly, we see nothing wrong with good, old-fashioned, honest, American low prices! Now, the prices we post to the general public on the Internet are simply competitive, and we will defend our American right to price competitively. Our "member only pricing" that is not shown to the general public is, in a word, "Unbeatable". We work very hard to give you the lowest possible prices and the best service in the business. You see it in the news on a daily basis, many business peoples value systems have gotten all screwed up lately. If we're going to fix the problems with America we have to start with ourselves. We have to fight back against those who have lost their moral compass. We're going to stay the course, follow our beliefs and stay true to our members.

Member Price Roll-Backs came into play the first part of this year when we discovered our advertising cost as a percentage of sales had dropped because of our member support. As a result, today we have been able to adjust our member pricing downward without hurting our bottom line. What our members see now are the lowest mark-ups we've ever taken and free shipping on orders of $50.00 or more. We use free shipping as a tool to continue to build our membership. A larger membership benefits all of us. As our membership grows, our fixed and some variable costs will decrease as a percentage of sales. As our costs decrease we will continue to roll-back prices. We do not predict any further price roll-backs in the near future, but it is possible that our costs will have declined enough by the first of next year to roll em back again. An increasing membership, and your continued support can make this all possible. It is important to note that new members joining on March 24th and thereafter will receive member pricing at the level our original members used to receive. New members will be evaluated on a periodic basis and could be moved to our current members roll-back price level depending on shopping frequency and purchases.

1 comment:

Anonymous said...

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patrick, n.m.